Global Markets Weekly Update

U.S. Market Overview

U.S. stocks experienced a decline during the holiday-shortened week, with most indexes closing out 2025 on a positive note, having achieved double-digit gains for the third consecutive year. The Nasdaq Composite saw the largest drop, while the Dow Jones Industrial Average and S&P MidCap 400 Index performed relatively better, losing 0.67% and 0.71%, respectively. The energy sector was a standout performer, benefiting from rising oil prices due to geopolitical tensions.

Pending home sales in the U.S. rose by 3.3% in November, the largest increase since February 2023, driven by lower mortgage rates and wage growth. The Federal Reserve's recent minutes revealed divisions among policymakers regarding future rate cuts, while jobless claims fell for the third consecutive week.

European Market Insights

The pan-European STOXX Europe 600 Index reached a new high, closing 1.26% higher, supported by a favorable economic environment. Inflation in Spain eased, while France saw a decrease in registered unemployment. However, the UK experienced an unexpected decline in house prices.

Japanese Market Update

Japan's stock markets saw a slight decline, with the Nikkei 225 Index down 0.8%. The yield on the 10-year Japanese government bond rose to its highest level since 1999, reflecting expectations of continued interest rate increases by the Bank of Japan.

Chinese Market Overview

Mainland Chinese stock markets ended the week mixed, with the CSI 300 Index declining slightly. However, the manufacturing purchasing managers' index showed signs of recovery, suggesting a potential measured approach to stimulus in 2026.

Other Key Markets

In Colombia, a significant minimum wage increase could lead to higher inflation and interest rates. Meanwhile, South Korea's stock market started the new year strong, buoyed by record-high export figures for 2025.